Strategic Cost Allocation.

A-Tier
Journal: Journal of Industrial Economics
Year: 1993
Volume: 41
Issue: 4
Pages: 387-402

Score contribution per author:

4.022 = (α=2.01 / 1 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Negative externalities or 'congestion'costs in the utilization of common resources introduce strategic considerations that tie cost allocation rules to competitiveness in external markets. The equilibrium rule for allocating common costs consists of 'profitability'and 'strategic' components. The profitability component dictates that the share of common costs imposed on a product should be inversely related to its relative profitability vis-a-vis other products. The strategic component dictates that the share of common costs should be modified to favor products sold in markets where strategic considerations are of relatively greater importance (i.e., oligopolistic vis-a-vis perfectly competitive markets). Copyright 1993 by Blackwell Publishing Ltd.

Technical Details

RePEc Handle
repec:bla:jindec:v:41:y:1993:i:4:p:387-402
Journal Field
Industrial Organization
Author Count
1
Added to Database
2026-01-25